Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

Q1. Explain in brief the origins of Just In Time. Explain the different types of wastes that can be eliminated using JIT Just in Time (JIT) is a management philosophy aimed at eliminating waste and continuously improving quality. If a firm is optimistic about the demand, then that firm increases their planned inventories. On the other hand if the demand is weak when compared to the expectations, then that firms unplanned inventories are high. That means companies dont keep a lot of excess inventory, then manufacture a product as an order comes in. It is management philosophy of continuous and forced problem solving. Credit for developing JIT as a management strategy goes to Toyota. Toyota JIT manufacturing started in the aftermath of World War II. Although the history of JIT traces back to Henry Ford who applied Just in Time principles to manage inventory in the Ford Automobile Company during the early part of the 20th Century, the origins of the JIT as a management strategy traces to Taiichi Onho of the Toyota Manufacturing Company. He developed Just in Time strategy as a means of competitive advantage during the post World War II period in Japan.The post-World War II Japanese automobile industry faced a crisis of existence, and companies such as Toyota looked to benchmark their thriving American counterparts. The productivity of an American car worker was nine times that of a Japanese car worker at that time, and Taiichi Onho sought ways to reach such levels. Two pressing challenges however prevented Toyota from adopting the American way: American car manufacturers made lots or a batch of a model or a component before switching over to a new model or component. This system was not suited to the Japanese conditions where a small market required manufacturing in small quantities. The car pricing policy of US manufacturers was to charge a mark-up on the cost price. The low demand in Japan led to price resistance. The need of the hour was thus to reduce manufacturing costs to increase profits. To overcome these two challenges, Taiichi Onho identified waste as the primary evil. The categories of waste identified included: 1. 2. 3. 4. 5. 6. Overproduction Inventory or waste associated with keeping dead stock Time spent by workers waiting for materials to appear in the assembly line Time spend on transportation or movement Workers spending more time than necessary processing an item Waste associated with defective items

1 Over production : Over production is to manufacture products before it is actually needed. If the demand for that product decreases, the extra parts or products produced may not be useful or needed. Also over production results in high storage costs and is also difficult to detect defects. So, over productions is considered a waste.

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

2 3

4. 5.

6.

7.

Inventory: Excess procurement or production builds up stock of materials which are not immediately use, this locking space and fund carrying heavy cost. Waiting time: Waste of time happen when goods are not moving or being processed. The operator, the machine or the part will either be not working or be worked upon. The duration is can be said to be unproductive and may create more serious consequences. Movement : Any unnecessary movement is a waste of energy; it causes blockages, disrupting movements and delaying the flow of other items creating delays. Effort: The people, who work, do not make a study as to how the products on which they are making are utilized and do not realize the purpose for which they are made. This lack of education will lead to waste of resources. Finally, they end up in shortage of resources when needed. Defective products. : The defective products leads to a tremendous loss to the company. This is because they use up the same equipments, workmen and the time that would be used to make good products. Thus defective products use up resources and result in losses. Over Processing : Some steps like unnecessary processing or production do not add value to the final output. As a results, it is waste of all the inputs that go into the process.

Taiichi Onho then sought to eliminate waste through the just-in-time philosophy, where items moved through the production system only as and when needed.

Q2. What is Value Engineering or Value Analysis? Elucidate five companies which have incorporated VE with brief explanation. Value Engineering (VE), also known as Value Analysis, is a systematic and function-based approach to improving the value of products, projects, or processes.VE involves a team of people following a structured process. The process helps team members communicate across boundaries, understand different perspectives, innovate, and analyze. When to use it? : Use Value Analysis to analyze and understand the detail of specific situations. Use it to find a focus on key areas for innovation. Use it in reverse (called Value Engineering) to identify specific solutions to detail problems. It is particularly suited to physical and mechanical problems, but can also be used in other areas. The concept of value engineering originated during the Second World War. It was developed by the General Electric corporations (GEC). Value Engineering has gained popularity due to its potential for gaining high Returns on investment (ROI). This methodology is widely used in business re-engineering, government projects, construction, assembling and machining processes, health care and environmental engineering, and many others. Value engineering process calls for a deep study of a product and the purpose for which it is used, such as the raw materials used; the processes of transformation; the equipment needed, and many others. It is also questions whether what is being used is the most appropriate and economical. This applies to all aspects of the products. The different aspects of value engineering can be encapsulated into a sequence of steps known as a Job Plan. Value Engineering in organisations helps to identify:

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

y y y y y y y y

The problem or situation that needs to be changed/improved All that is good about the existing situation The improvements required in the situation The functions to be performed The ways of performing each function The best ways among the selected functions The steps to be followed to implement the function The person who executes the function

Five Companies which have incorporated VE : 1. GENERAL ELECTICALS CORPORATION (GEC) : The concepts of value engineering originated in 1947 in General Electricals corporation (GEC) When a substitute for asbestos for flooring had to be found. Specialized dealers could provide an equally good material at a lesser price. Initially, the practioners were the people in charge of purchasing who tried to locate substitute material which would be equally good, if not better, at a lower price. This the first and basic approach to value engineering. A the concept percolated to the manufacturing departments, engineers applied the same principles and found that, they could use alternate materials, which were cheaper giving the same performance. It was also fund that dimensions and tolerance could be altered without affecting the performance of the part or the product. The investigations took them on the path of eliminating some operations. The focus was on the value of each bit materials, each operation. This approach led to the design stage. 2. ASHOK LEYLAND.:In implementation of VA, Ashok Leyland changed gear material from phosphor bronze to a less expensive cast iron and eliminated frequent field complaint of gear seizure in trucks.

3. TVS.: T.V. Sundaram Lyenger (TVS) Limited is one of the largest automobile distribution companies in India. During the mid 1940 to 1960s, TVS based in Madurai was ranked as the best bus transportation system in India. It could manage to run the fleets for about 96% of the time. TVS used the VE approach to restore the mobility of buses that had broken down. They stocked their garage with some critical assemblies of a bus. Whenever, a part or an assembly failed of a bus, they replaced it immediately with a new one, thus restoring mobility within a couple of hours. When compared to the traditional method, this approach has gained much more benefits to the company, it helped to save time, reduce cost, efficient, quicker, and competitive.

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

4. MODI XEROX. :Modi Xerox designed the VE-d low cost copier 1025 ST, which uses a single tray. The advantage of new design is that it is easy to operate and the cost is also very low. 5. TITAN :Titan watches introduced new designs adopting a strategy of innovation. Q3. Explain different types of Quantitative models.Differentiate between work study and motion study Quantitative models are needed for a variety of management tasks, including (a) Identification of critical variables to use for health monitoring, (b) Anticipating service level violations by using predictive models, and (c) On-going optimization of configurations. Unfortunately, constructing quantitative models requires specialized skills that are in short supply. Even worse, rapid changes in provider configurations and the evolution of business demands mean that quantitative models must be updated on an on-going basis. This paper de-scribes an architecture and algorithms for on-line discovery of quantitative models without prior knowledge of the managed elements. The architecture makes use of an element schema that describes managed elements using the common information model (CIM). Algorithms are presented for selecting a subset of the element metrics to use as explanatory variables in a quantitative model and for constructing the quantitative model itself. We further describe a prototype system based on this architecture that incorporates these algo-rithms. We apply the prototype to on-line estimation of response times for DB2 Universal Database under a TPC-W workload. Of the approximately 500 metrics available from the DB2 performance monitor, our system chooses 3 to construct a model that explains 72% of the variability of response time. In production and operations management, models refer to any simple representation of reality in different forms such as mathematical equations, graphical representation, pictorial representation, and physical models. Thus a model could be the well known economic order quantity (EOQ) formula, a PERT network chart, a motion picture of an operation, or pieces of strings stretched on a drawing of a plant layout to study the movement of material. The models help us to analyze and understand the reality. These also help us to work determine optimal conditions to for decision making. For example, the EOQ formula helps us to determine the optimum replenishment quantities that minimize the cost of storing plus replenishing.The number of different models we use in production and operations management run into hundreds, or even more than a thousand. These are really too many to enumerate in a place like these. I am listing below a random list of broad categories of models used in production and operations model.Operations research models. This is actually a very broad classification and covers many of the other categories in the list given here. 1 2 3 4 5 6 Inventory models Forecasting models Network models Linear programming models Queuing models Production planning and control models

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

7 Engineering drawings 8 Photographs and motion pictures used in time and motion studies. 9 Material movement charts 10 Process flow diagrams 11 Systems charts 12 Statistical process control charts. 13 Variance analysis 14 Regression analysis 15 Organization chart 16 Fishbone chart Few of the above are explained below, 1. LINEAR PROGRAMMING: Linear programming technique is often used for optimizing a given objective like; profit or revenue maximization, or cost outgo minimization. Distribution of the revenues is the critical issue, when there are limited resources and they have to meet competing demands. 2. TRANSPORTATION MODEL: Transportation model is concerned with goods from manufacturing centres or warehouses which have to be supplied to depots or retails outlets. The demand and supply position of the places where they are required or produced and the cost of transportation are considered in the model. We use this model to economize. 3. ASSISGNMENT MODEL: Allocating jobs or persons to machines, awarding different projects to contractors is done so that maximum returns occur or less expenses are incurred. Hence, calls for the use of this model.

4. INVENTORY CONTROL MODEL: Inventory control model considers the: y Frequency of placing orders. y Quantities per order considering the cost of placing an order. y Number of pieces that are to be kept in reserve. y Rate of consumption. y Lead time required for the supplier. y Cost involved in storage. We have different models which give solutions to optimization depending upon the probabilities of consumption and supply. 5. WAITING LINE MODELS: Queues are formed when the rate of services is at a variance with the rate of arrival. They are formed when the rate of production is less at particular points compared to the previous one. Sometimes we see multiple service points and a single queue are formed for feeding them. Number of items which includes the following is studied with some special techniques. y y y y y People to be serviced. Rate of service Type of queue discipline that is intended to be followed. Policy of priority Tolerable amounts of waiting

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

y Others. 6. SIMULATION MODELS: Simulation models are used when we will not be able to formulate mathematical model. So, we develop a model which resembles a real life situation. Based on this pattern, we predict and plan our procurement, production, delivery and other actions. 7. PERT (PROJECT EVALUATION AND REVIEW TECHNIQUE) AND CPM (CRTICAL PATH METHOD) MODELS: When projects are undertaken with a number of activities, some happens in sequence, with gaps of weeks or months and some happens simultaneously. It is important to estimate the time required for completion of the project. A lot of coordination is needed while supplying the resources. It is also equally important to identify the bottlenecks and smoothen resources so that time schedules are maintained. Delayed completion may entail penalties. In this model, we adopt special methods to make the system. Differentiate between work study and motion study Work study We can say that work study is being conducted when analysis of work methods is conducted during the period when a job is done on a machine or equipment. Motions study. Method study is on studying the method currently being used and developing a new method of performing the task in a better way.

The study helps in designing the optimum work Operation flow charts, motion charts, flow process charts, method and standardization of the work method. which are the elements of the task are studied to find the purpose of each activity, the sequences in which they are done, and the effect of these on the work. The study enables the methods engineer to search The study may help in changing some of them and even for better methods for higher utilization of man and eliminate some of them to effect improvements. machine and accomplishment of higher productivity. The study gives an opportunity to the workmen to The new method should result in saving of time, reduced learn the process of study thus making them able to motions and simpler activities. offer suggestions for improved methods.

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

Q4. What is Rapid Prototyping? Explain the difference between Automated flow line and Automated assembly line with examples. Prototyping is a process by which a new product is developed in small numbers. Prototyping is helpful to: y y y y Determine the suitability of the materials Study the various methods of manufacture Determine type of machinery required Develop techniques to overcome problems that may be encountered when full scale manufacturing is undertaken.

Rapid prototyping is the automatic construction of physical objects using additive manufacturing technology. The first techniques for rapid prototyping became available in the late 1980s and were used to produce models and prototype parts. Today, they are used for a much wider range of applications and are even used to manufacture production-quality parts in relatively small numbers. Some sculptors use the technology to produce complex shapes for fine arts exhibitions. Prototype do meet the specification of the components that enter a product and performance can be measured on those. It helps in confirming the design and any shortcomings can be rectified at low cost. If serious defects or problems arise during manufacturing, a thorough change in design or even its replacement may be considered. Toa arrive at decisions and to make use of the advantageous stated above, it is important that the prototypes are made within the shortest possible time, Rapid prototyping facilities this. The advanced Rapid Prototype Modelling Processes are: y Computer Aided Design (CAD) y Selective Laser Sintering (SLS) y Fused Deposition Modelling (FDM) y Lamination Object Manufacturing (LOM) y Electronic Beam Melting (EBM) Since, the basis data about the product is already available in CAD; the above processes can produce models in a matter of a few days. Conventional machines like lathes, milling machines, grinding machines, Electro Discharge Machining (EDM) also help in the production of prototypes. Due to their advantages, Rapid Prototyping is being increasingly used. A bi-monthly magazine TCT Magazine calling the Rapid Prototyping as Time Compressing Techniques is dedicated to the publication of latest developments in this field as researched and developed by practitioners around the world.

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

Difference between automated flow lines & assembly flow lines AUTOMATED FLOW LINES ASSEMBLY FLOW LINES

Several Automated machines are linked by a transfer All equipments are needed to in automated Assesmbly line system. Handling machine have main role to move semi All equipments make role of making sub-assemblies put finished product to the next stage. together and fitted. Semi-finished products are the main core activities. Here Sub-assemblies product are the core activites.

Here raw materials are achieving to get shapes and acquire special properties.

required Here intermediated products are achieving to get finished product. Here All parts or sub-assemblies are fitted to enables the product to be in readiness to perform the function it was designed to. This process is called assembly.

The materials are needed to be moved, held, rotated, fitted and positioned for completing different operations.

Human intervention may be needed to verify that the No human intervention is needed, methodologies are operations are taking place according to standards. framed to achieve the final result, basic principle is to fit parts together and ensure linkages so that the functions are integrated and give out the desired output.

Automated flow lines : When several automated machines are linked by a transfer system which moves the parts by using handling machines which are also automated, we have an automated flow line. After completing an operation on a machine, the semi finished parts are moved to the next machine in the sequence determined by the process requirements a flow line is established. The parts at various stages from raw material to ready for fitment or assembly are processed continuously to attain the required shapes or acquire special properties to enable them to perform desired functions. The materials need to be moved, held, rotated, lifted, positioned etc. for completing different operations. Sometimes, a few of the operations can be done on a single machine with a number of attachments. They are moved further to other machines for performing further operations. Human intervention may be needed to verify that the operations are taking place according to standards. When these can be achieved with the help of automation and the processes are conducted with self regulation, we will have automated flow lines established. One important consideration is to balance times that different machines take to complete the operations assigned to them. It is necessary to design the machines in such a way that the operation times are the same throughout the sequence in the flow of the martial. In fixed automation or hard automation, where one component is manufactured using several operations and machines it is possible to achieve this condition or very nearly. We assume that product life cycles are sufficiently stable to invest heavily on the automated flow lines to achieve reduced cost per unit. The global trends are favouring flexibility in the manufacturing systems. The costs involved in changing the set up of automated flow lines are high. So, automated flow lines are considered only when the product is required

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

to be made in high volumes over a relatively long period. Designers now incorporate flexibility in the machines which will take care of small changes in dimensions by making adjustments or minor changes in the existing machine or layout. The change in movements needed can be achieved by programming the machines. Provision for extra pallets or tool holders or conveyors is made in the original design to accommodate anticipated changes. The logic to be followed is to find out whether the reduction in cost per piece justifies the costs of designing, manufacturing and setting up automated flow lines. Group Technology, Cellular Manufacturing along with conventional Product and Process Layouts are still resorted to as they allow flexibility for the production system. With methodologies of JIT and Lean Manufacturing finding importance and relevance in the competitive field of manufacturing, many companies have found that well designed flow lines suit their purpose well. Flow lines compel engineers to put in place equipments that balance their production rates. It is not possible to think of inventories (Work In Process) in a flow line. Bottlenecks cannot be permitted. By necessity, every bottleneck gets focused upon and solutions found to ease them. Production managers see every bottleneck as an opportunity to hasten the flow and reduce inventories. However, it is important to note that setting up automated flow lines will not be suitable for many industries Automated Assembly Lines : All equipments needed to make a finished product are laid out in such a way as to follow the sequence in which the parts or subassemblies are put together and fitted. Usually, a frame, body, base will be the starting point of an assembly. The frame itself consists of a construction made up of several components and would have been assembled or fabricated in a separate bay or plant and brought to the assembly line. All parts or subassemblies are fitted to enable the product to be in readiness to perform the function it was designed to. This process is called assembly. Methodologies of achieving the final result may vary, but the basic principle is to fit all parts together and ensure linkages so that their functions are integrated and give out the desired output. Product Layouts are designed so that the assembly tasks are performed in the sequence they are designed. You will note that the same task gets repeated at each station continuously. The finished item comes out at the end of the line The material goes from station 1 to 5 sequentially. Operation 2 takes longer time, say twice as long. To see that the flow is kept at the same pace we provide two locations 2a and 2b so that operations 3, 4 an 5 need not wait. At 5, we may provide more personnel to complete operations. The time taken at any of the locations should be the same. Otherwise the flow is interrupted. In automated assembly lines the moving pallets move the materials from station to station and moving arms pick up parts, place them at specified places and fasten them by pressing, riveting, screwing or even welding. Sensors will keep track of these activities and move the assemblies to the next stage. An operator will oversee that the assemblies are happening and there are no stoppages. The main consideration for using automated assembly lines is that the volumes justify the huge expenses involved in setting up the system.

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

5. Explain Break Even Analysis and Centre of Gravity methods. Explain Product layout and process layout with examples Break Even Analysis refers to the calculation to determine how much product a company must sell in order to break even on that product. It is an effective analysis to measure the impact of different marketing decisions. It can focus on the product, or incremental changes to the product to determine the potential outcomes of marketing tactics. The formula for a break even analysis is: Break even point ($) = (Total Fixed Costs + Total Variable Costs). Total Variable Costs = Variable cost per unit x units sold Unit contribution (contribution margin) = Price per unit Variable cost per unit. When looking at making a change to the marketing program, one can calculate the incremental break even volume, to determine the merits of the change. This determines the required volume needed such that there is no effect to the company due to the change.If making changes to fixed costs (changing advertising expenditure etc.): Incremental break even volume = change in expenditure / unit contribution. Thus if a company increased its advertising expenditure by $1 million, and its unit contribution for the specific product is $20, then the company would need to sell an additional 50,000 units to break even on the decision. If making changes to the unit contribution (change in price, or variable costs): Incremental break even volume = (Old Unit Volume x (Old Unit Contribution New Unit Contribution))/ New Unit Contribution Thus if a company increased its price from $15 to $20, and had variable costs of $10, it is increasing its unit contribution from $5 to $10, assume also an old unit volume of 1 million. It could therefore reduce its volume by 500,000 to break even on the decision. When making changes to a specific product, cannibalization of other products may occur. To calculate the effect of cannibalization, the Break Even Cannibalization rate for a change in a product is: New Product Unit Contribution / Old Product Unit Contribution. New Product is the planned addition to a product line (or change to a product within a product line), Old Product is the product that loses sales to the new product (or the product line that loses sales). The cannibalization rate refers to the percentage of new product that would have gone to the old product, this must be lower than the break even cannibalization rate in order for the change to be profitable. In manufacturing, facility layout consists of configuring the plant site with lines, buildings, major facilities, work areas, aisles, and other pertinent features such as department boundaries. While facility layout for services may be similar to that for manufacturing, it also may be somewhat differentas is the case with offices, retailers, and warehouses. Because of its relative permanence, facility layout probably is one of the most crucial elements affecting efficiency. An efficient layout can reduce unnecessary material handling, help to keep costs low, and maintain product flow through the facility. Firms in the upper left-hand corner of the product-process matrix have a process structure known as a jumbled flow or a disconnected or intermittent line flow. Upper-left firms generally have a process layout. Firms in the lower right-hand corner of the product-process matrix can have a line or continuous flow.

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

Firms in the lower-right part of the matrix generally have a product layout. Other types of layouts include fixed-position, combination, cellular, and certain types of service layouts. Centre of gravity method is used mainly when; y Transportation costs, either for distribution of products or collection of materials from different suppliers is the main criterion. Production rates are high. The volume and weights of materials that have to be moved are huge. Time taken either to receive materials from suppliers or delivery to customers is critical.

y y y

It is better to locate the facility at such a place, which caters to the different points most optimally. The vital factor is the load, that is, number of items, or the weights that need to be moved from the central location to the existing or demanding point. We use this method when, both distance and load have to be considered for optimality in terms of costs. PROCESS LAYOUT Process layouts are found primarily in job shops, or firms that produce customized, low-volume products that may require different processing requirements and sequences of operations. Process layouts are facility configurations in which operations of a similar nature or function are grouped together. As such, they occasionally are referred to as functional layouts. Their purpose is to process goods or provide services that involve a variety of processing requirements. A manufacturing example would be a machine shop. A machine shop generally has separate departments where general-purpose machines are grouped together by function (e.g., milling, grinding, drilling, hydraulic presses, and lathes). Therefore, facilities that are configured according to individual functions or processes have a process layout. This type of layout gives the firm the flexibility needed to handle a variety of routes and process requirements. Services that utilize process layouts include hospitals, banks, auto repair, libraries, and universities. Improving process layouts involves the minimization of transportation cost, distance, or time. To accomplish this some firms use what is known as a Muther grid, where subjective information is summarized on a grid displaying various combinations of department, work group, or machine pairs. Each combination (pair), represented by an intersection on the grid, is assigned a letter indicating the importance of the closeness of the two (A = absolutely necessary; E = very important; I = important; O = ordinary importance; U = unimportant; X = undesirable). Importance generally is based on the shared use of facilities, equipment, workers or records, work flow, communication requirements, or safety requirements. The departments and other elements are then assigned to clusters in order of importance. Advantages of process layouts include: 1. Flexibility. The firm has the ability to handle a variety of processing requirements. Cost. Sometimes, the general-purpose equipment utilized may be less costly to purchase and less costly and easier to maintain than specialized equipment.

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

2. Motivation. Employees in this type of layout will probably be able to perform a variety of tasks on multiple machines, as opposed to the boredom of performing a repetitive task on an assembly line. A process layout also allows the employer to use some type of individual incentive system. particularly vulnerable to equipment failures. Disadvantages of process layouts include: Utilization. Equipment utilization rates in process layout are frequently very low, because machine usage is dependent upon a variety of output requirements. Cost. If batch processing is used, in-process inventory costs could be high. Lower volume means higher per-unit costs. More specialized attention is necessary for both products and customers. Setups are more frequent, hence higher setup costs. Material handling is slower and more inefficient. The span of supervision is small due to job complexities (routing, setups, etc.), so supervisory costs are higher. Additionally, in this type of layout accounting, inventory control, and purchasing usually are highly involved. Confusion. Constantly changing schedules and routings make juggling process requirements more difficult. PRODUCT LAYOUT Product layouts are found in flow shops (repetitive assembly and process or continuous flow industries). Flow shops produce high-volume, highly standardized products that require highly standardized, repetitive processes. In a product layout, resources are arranged sequentially, based on the routing of the products. In theory, this sequential layout allows the entire process to be laid out in a straight line, which at times may be totally dedicated to the production of only one product or product version. The flow of the line can then be subdivided so that labor and equipment are utilized smoothly throughout the operation. Two types of lines are used in product layouts: paced and unpaced. Paced lines can use some sort of conveyor that moves output along at a continuous rate so that workers can perform operations on the product as it goes by. For longer operating times, the worker may have to walk alongside the work as it moves until he or she is finished and can walk back to the workstation to begin working on another part (this essentially is how automobile manufacturing works). On an unpaced line, workers build up queues between workstations to allow a variable work pace. However, this type of line does not work well with large, bulky products because too much storage space may be required. Also, it is difficult to balance an extreme variety of output rates without significant idle time. A technique known as assembly-line balancing can be used to group the individual tasks performed into workstations so that there will be a reasonable balance of work among the workstations. Product layout efficiency is often enhanced through the use of line balancing. Line balancing is the assignment of tasks to workstations in such a way that workstations have approximately equal time requirements. This minimizes the amount of time that some workstations are idle, due to waiting on parts from an upstream process or to avoid building up an inventory queue in front of a downstream process.

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

Advantages of product layouts include: Output. Product layouts can generate a large volume of products in a short time. Cost. Unit cost is low as a result of the high volume. Labor specialization results in reduced training time and cost. A wider span of supervision also reduces labor costs. Accounting, purchasing, and inventory control are routine. Because routing is fixed, less attention is required. Utilization. There is a high degree of labor and equipment utilization. Disadvantages of product layouts include: Motivation. The systems inherent division of labor can result in dull, repetitive jobs that can prove to be quite stressful. Also, assembly-line layouts make it very hard to administer individual incentive plans. Flexibility. Product layouts are inflexible and cannot easily respond to required system changes especially changes in product or process design. System protection. The system is at risk from equipment breakdown, absenteeism, and downtime due to preventive maintenance. Q.6 Explain Jurans Quality Trilogy and Crosbys absolutes of quality. List out the pillars of total productive maintenance. JURANS QUALITY TRIOLOGY Juran uses his famous universal Breakthrough Sequence to implement quality programmes. The universal break through sequences are ; y Proof of need: there should be a compelling need to make changes. y Project identification: here what is to be changed is identified. Specific projects with time frames and the resource allocation are decided. y Top management commitment: Commitment of the top management is to assign people and fix responsibilities to complete the project. y Diagnostic journey: Each team will determine whether the problems result from systemic causes or are random or are deliberately caused. Root causes are ascertained with utmost certainty. y Remedial Action: This is the stage when changes are introduced. Inspection, testing, and validation are also included at this point. y Holding on to the gains: the above steps results in beneficiary results. Having records or all actions and consequences will help in further improvements. The actions that results in the benefits derived should be the norm for establishing standards. JURAN HAS CATEGORISED COST OF QUALITY IN TO FOUR CATEGORIES:

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

1. Failure costs internal: These are cost of rejections, repairs in terms of materials, labour, machine time and loss of morale. 2. Failure costs-External: These are cost of replacement, on-site rework including spare parts and expenses of the personnel, warranty costs and loss of goodwill. 3. Appraisal costs: These are cost inspection, including maintenance of records, certification, segregation costs, and others. 4. Prevention costs: Prevention cost is the sequence of three sets of activities, Quality planning, Quality control, and Quality improvement, forming the triology to achieve TOTAL QUALITY MANAGEMENT. JURANS ARGUMENT SAYS THAT; y Quality is the result of good planning consideration the needs of both internal and external customers and develops processes to meet them. The processes are also planned to meet them. Quality is built into the system of manufacture, inputs and processes that are on stream like raw material, spare parts, labour, machine maintenance, training, warehousing, inspection procedures, packaging, and other. All these have to follow standards and control exercises to make sure that mistake do not occur often and that if mistakes do occur then they are corrected at the source. Quality improvement measures are essential to keep the quality culture alive. Newer methods will be found, some operations can be eliminated, improved technology available. In short, as experience is gained things can always be done better. IT is for the management to take the initiative an encourage the employees to be on lookout for opportunities for improvement.

CROSBYS ABSOLUTES OF QUALITY Like Deming, Crosby also lays emphasis on top management commitment and responsibility for designing the system so that defects are not inevitable. He urged that there be no restriction on spending for achieving quality. In the long run, maintaining quality is more economical than compromising on its achievement. His absolutes can be listed as under: y y y y Quality is conformance to requirements, not goodness Prevention, not appraisal, is the path to quality. Quality is measured as the price Paid for non-conformance and as indices Quality originates in all factors. There are no quality problems. It is the people designs and processes that create problems.

Crosby also has given 14 points similar to those of Deming. His approach emphasizes on measurement of quality, increasing awareness, corrective action, error cause removal and continuously reinforcing the system, so that advantages derived are not lost over time. He opined that the quality management regimen should improve that overall health of the organization and prescribed a vaccine. The ingredients are.

Master of Business Administration - MBA Semester 2 MB0044 Production & Operations Management Assignment Set- 1

1. Integrity: Honesty and commitment help in producing everything right first time, every time. 2. Communication: Flow of information between departments, suppliers, customers helps in indentifying opportunities. 3. Systems and operations: These should bring in a quality environment so that nobody is comfortable with anything less than the best.